FDI in retail not in Nation's interest: state govt

Centre's move will dislocate the small retailers, lead to unemployment.

Making the Gujarat government's views clear regarding the FDI in retail sector, Gujarat government spokespersons health minister Jay Narayan Vyas and industry minister Saurabh Patel said that Gujarat Government is of the firm view that the recently announced Government of India's policy on 'FDI in Retail' will not only dislocate the small and unorganised retailers but also result into unemployment which is against the national interest.

In an official statement, the spokespersons said that earlier, the state government in its views on the Report of Parliamentary Standing Committee on Commerce in the matter of Foreign and Domestic investments in Retail sector, has clearly stated that illegal practice of Combination and Bargaining sale by the Single Brand Corporate Retails are covered under the Consumer Protection Act, 1986 as ‘Restrictive Trade Practices’ and ‘Unfair Trade Practices’.

"Moreover, foreign trade investment in retail sector is not allowed and cannot be allowed in the name of ‘Cash and Carry’. Backdoor illegal entry of foreign companies into retailing should be dealt with strongly by the Department of Foreign Investment. With the likelihood of rise in unemployment due to slide down of retail traders, the state government has suggested to conduct systematic survey or study to assess the extent of dislocation of small retail traders due to big retailers. Further, such big retailers who indulge into predatory pricing should be banned or removed from the markets," the spokespersons stated.

However, the ministers said the state government was of view that there are advantages and disadvantages of domestic and foreign retailers into retail trade for which detailed study is required before taking any decision.

Meanwhile, the ministers added that it was faulty to believe that Gujarat government is supporting the FDI in retail policy and further, in this matter, the State Government subscribes to the views taken by the Central BJP party leadership.